Decimal helps small-business owners save more for retirement

The Online 401(k)’s New Comparability feature enables small-business owners to save more than ever before

SAN FRANCISCO (May 24, 2005) – Decimal, Inc., (www.theonline401k.com) the leading provider of full-service Web-based 401(k) plans for small and single-person businesses, today announced its new feature for small-business 401(k) plans, New Comparability.

New Comparability, also known as Age-Weighted, is a type of profit-sharing plan that maximizes the amount contributed to a select group (typically the business owner and other key employees) while minimizing the total cost of employee contributions. This feature has been around for a few years, but because the plans are difficult to administer, and quite expensive, this feature has been out of reach for the types of businesses that it is most appropriate for: small businesses with fewer than ten employees.

Under a traditional profit-sharing plan, an employer must contribute the same percentage of profits to its employees. However, under a New Comparability profit-sharing plan, an older business owner can contribute a greater percentage of the profits to his or her 401(k) account, tax-deferred, because the profit-sharing calculation is based on how long the employee has until retirement, rather than a flat percentage.

Decimal decided to offer this feature to its small businesses in response to the increasing requests from its clients, who are all small businesses. As Baby Boomers, who comprise of approximately 77 million of the US’s population, age, they are worrying more and more about retirement and interested in features that can help maximize contributions, such as New Comparability.

What is revolutionary about this is Decimal’s use of technology, which allows it to offer this feature, which was once the territory of expensive, specialized pension consultants, to a broader spectrum of small businesses at an affordable price. This feature best suits smaller businesses (10 employees and under).

Small businesses interested in learning more about The Online 401(k) and the New Comparability feature can request a quote at www.theonline401k.com and automatically receive a customized proposal via e-mail.  Small businesses can easily establish their 401(k) plan, thanks to a streamlined plan adoption process.  Decimal offers a wide variety of investments to choose from through Charles Schwab & Co., Inc.’s One Source^® platform. Once the 401(k) plan is set up, employees access 401(k) and investment education, select their investments and manage their individual 401(k) accounts – all from the convenience of their desktop.

For more information on The Online 401(k), please visit www.theonline401k.com.

E-mail us at press@theonline401k.com
or call us at 877.775.401k.